Consumers today have more influence and more knowledge about the products they want to purchase than ever before. If they are unsure about a product, they can read online reviews, watch YouTube videos, read discussion forums, and ask friends and strangers on social media. Within this world, how can multi-level marketing (MLM) companies continue to be relevant? That was the question we set out to ask when working on Belatrix’s latest whitepaper, which explores the multi-level marketing industry.
A few years ago, the head of Avon digital spoke about the shift from “ding dong” to “dot com”. However, as we highlight in the whitepaper, this describes just the first stage of this change, moving from physical channels to e-commerce. Today, the landscape continues to change, with social media becoming ever more important, and consumers who instinctively want to shop via their smartphone.
The challenge for many multi-level marketing companies, which have a long, traditional heritage, is how to become digital-first companies which can support their commissioned-based workforce with the tools to help them sell to a new generation of consumers.
We examine three key trends which MLMs are currently facing:
As a result of these trends, forward-thinking MLMs are investing significantly in technology, and reviewing their business processes. From creating innovative mobile applications, to building new data and digital capabilities, MLMs are in a period of significant change. As a consequence, we’re also seeing new partnerships emerge. Just recently, Avon Products announced that it was creating a new content studio with a production company as part of its digital transformation. It is doing this as it recognizes its representatives need quality content to share with their own communities, and be successful selling via digital channels.
Read the whitepaper here, exploring some of the key trends affecting the MLM industry, and how leading MLMs are using digital technologies.
April 23 / 2020
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